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Sustainability Report 200210

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    RICOHELECTRONICS, INC.

    SUSTAINABILITYREPORTDECEMBER2002

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    TABLEOFCONTENTS

    ABOUT RICOHELECTRONICS, INC......................................................4

    OURENVIRONMENTALSTRATEGY.......................................................5

    USINGENVIRONMENTAL MANAGEMENT SYSTEMS .........................................6

    ACHIEVINGZEROWASTETO LANDFILL ................................................7

    REDUCINGENERGY...........................................................................8

    RECYCLINGOPERATIONS....................................................................9

    WORKINGWITHOURCOMMUNITIES ...................................................10

    OTHERCOMMUNITY-BASED ACTIVITIES.............................................11

    GAININGRECOGNITION ..................................................................12

    OTHERRECOGNITION....................................................................13

    REMEDIATING ENVIRONMENTALCONTAMINATION .....................................14

    WORKINGWITHOURSUPPLIERS ......................................................15

    RICOH ELECTRONICS, INC. ENVIRONMENTAL POLICYAt Ricoh Electronics, Inc. we believe environmental protection is an important part ofour operations. We continually work to develop and implement environmental protectionactivities that will lead to reduced pollution and more efcient use of our natural resources.Additionally we will meet or exceed applicable environmental laws and regulations, as wellas other established requirements.

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    Mankinds continued survival on this planet depends on the availability of essential resources and a

    healthy environment for all living things. The challenge today is to better utilize our resources and

    protect our environment.

    Ricohs philosophy is to pursue environmental conservation because we have a strong sense

    of mission as a citizen of this Earth. We do not take action to preserve our environment simply

    for the sake of complying with regulations; we do so because it is fundamental to our continuedsuccess as a business. We realize that environmental conservation is not only a social issue,

    but also a critical part of management. Our role as a good corporate citizen requires us to take

    active leadership in promoting and supporting a healthy environment.

    This report summarizes the details and results of our environmental conservation activities.

    We hope this report will help readers discover the extent of Ricoh Electronics, Inc.s

    commitment to environmental protection. We welcome your honest opinion to further

    improve our activities in terms of quality and effectiveness.

    PRESIDENTS MESSAGE

    3

    SHUNSUKE NAKANISHI

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    ABOUT RICOHELECTRONICS, INC

    Ricoh Electronics, Inc. is the North American

    manufacturing subsidiary of Ricoh Company, Ltd.,

    a $14 billion global leader in computer-connected

    digital multi-functional document systems anddiversied ofce automation equipment.

    Since the founding of Ricoh Electronics, Inc. in

    Orange County, California, in 1973, we have faithfully

    upheld our commitment to quality and environmental

    excellence while experiencing impressive growth in

    the array of products and services we provide. Our

    1,200 employees are dedicated to meeting the

    challenges associated with this tremendous growth

    and achieving our vision.

    digital copiers

    peripherals

    printed circuit boards

    SecureFaxTM machines

    eCabinets

    thermal media

    toner

    parts

    remanufactured copiers

    remanufactured toner cartridges

    customer-congured products

    Our parent company, Ricoh Company, Ltd. is a leading global manufacturer of ofce automation equipment. Ricoh

    has 137 consolidated subsidiaries and afliates in Japan and 267 overseas, together employing around 74,200 people.

    4

    Currentlywe manufacture:

    Irivine

    Toluca,

    Mexcio

    Lawrenceville,

    Georgia

    Tustin

    Santa Ana

    We havefacilities in: Orange County, California

    (Tustin, Irvine and Santa Ana)

    Lawrenceville, Georgia

    Toluca, Mexico

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    User

    Dealer

    Productmanufacturer

    Partsmanufacturer

    Materialsmanufacturer

    Maintenancecompany,

    Private recoverymachine

    Materialssupplier

    Productrecoverycenter

    Partsrecoverycenter

    Materialsrecoverycenter

    User ofrecyclingmaterials

    Collectioncenter

    Recyclingcenter Shredder

    company

    Oil recoverycompany,smeltingcompany

    Thermalenergy

    collectioncompany

    Final disposalcompany

    Privatereuse

    Reuse ofproducts

    Reuse ofparts

    Colsedloop

    materialsrecycling

    Openloop

    materialsrecycling

    Sorting anddisassembly

    Disassemblyoil

    Crushing of products

    Landll

    Energyrecovery

    (Energy, CO2)

    Generation of raw materialsChemical recyclingMetals recycling

    At Ricoh Electronics, Inc. we believe environmental protection is an important part of our management philosophy.

    We continually work to develop and implement environmental protection activities that will lead to reduced pollution

    and more efcient use of our natural resources. Additionally, we meet or exceed applicable environmental laws and

    regulations, as well as other established requirements. RICOH

    5

    OURENVIRONMENTALSTRATEGY

    Foundation andActivity PillarsforEnvironmental Activities

    Energy ConservationResource Conservation

    and Recycling

    Pollution Prevention

    The Ricoh Group applies the followingtools to promote efcient environmentalprotection activities:

    Comet CircleTMThe Ricoh Group is helping to build a society that conserves and recirculates

    resources, reducing the environmental impact of its products and operations.

    The Comet CircleTM

    concept represents a process by

    which we clarify the amount of environmental

    impact that occurs at each level of our

    corporate activities.

    The closer a recovery process is to

    the inner loops, the better it is for

    the environment. We aim to make

    the loops of resource recirculation

    smaller by identifying the optimum

    recovery point in a products service

    life and developing efcient resource

    recovery systems.

    Environmental Management Systembased on ISO14001 standard

    Environmental Impact Information System

    Green partnership with suppliers

    Technology development

    Education and awareness

    Social contributions

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    To promote continuous environmental improvement, all Ricoh

    Electronics, Inc. manufacturing groups are ISO 14001 certied.

    Ofce Machine Group rst issued in February 1998and last issued in February 2001

    Supply Products Group rst issued in January 1999.

    Reprographics Supply Group/Thermal Media Group last issued in January 2002

    Georgia plant rst issued in September 1999 (current)

    Ricoh Industrial de Mexico rst issued in March 2000 (current)

    By March 31, 2001, the company achieved its ambitious goal of zero waste to landll at all its manufacturing

    facilities. In the process, a culture change occurred that directly affected over 1,200 employees and many

    suppliers and vendors. Indirectly, this project affected many communities, employees families and friends.

    In keeping with the companys slogan: Our Earth, Our Tomorrow, Ricohs production sites no longer

    send waste to landlls. All waste from our ofce and manufacturing operations are diverted using 5 R

    resource recovery methods (see below).

    Ricoh Electronics, Inc. continues to improve its zero waste to landll system and pursue additional

    environmental goals. We feel a strong sense of responsibility to share this information and be a leader

    for other North American manufacturing facilities.

    Our facilities achieved this goal by:December 2000 Georgia plant

    January 2001 1062 McGaw (Irvine) facility and all Santa Ana facilities

    February 2001 Machine Parts Division and all Tustin facilities

    March 2001 Ricoh Industrial de Mexico

    To achieve Zero Waste to Landll we use the 5 Rs:

    Refuse avoid buying anything that becomes waste.

    Return return what can be returned to suppliers. Example: hard ber cores and plastic wrap fromthermal transfer ribbon master roles are returned to Ricoh Numazu or Fukui for reuse.

    Reduce reduce the amount of waste generated in the rst place by improving yields.

    Reuse reuse anything that can be reused. Example: Plastic bags used in copier production werereused to distribute t-shirts, maps and other items to California employees volunteering to cleanup

    Santiago Creek in September, 2002.

    Recycle Examples: face/base paper is turned into tissue and paper towels. Scrap wood is turnedinto chipboard.

    USINGENVIRONMENTAL MANAGEMENT SYSTEMSRicoh Electronics, Inc.s Environmental Management System (EMS) provides a structured approach to setting environmental

    objectives and targets, achieving those objectives and targets, and demonstrating that they have been achieved.

    ACHIEVINGZEROWASTETO LANDFILL

    6

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    RICOH

    7

    In Georgia, California and Mexicowe accomplished the following:

    REIsWaste Recycling Trend

    Eco-packaging

    The design of copier packaging now uses easily disassembled

    and sorted recyclable materials. Prior designs of wood,

    cardboard and Styrofoam were hard to disassemble and

    dispose of. Package design for recycled toner cartridges

    was also improved to be more environmentally friendly.

    The use of Styrofoam was eliminated and the size of the

    box was reduced resulting in more efcient transportation

    and more cartridges per truckload.

    Plastic resin silo

    The Georgia plant initiated the installation of a 3,000-

    gallon plastic resin silo that allows large shipments of

    resin to be delivered via tanker truck. This bulk storage

    method eliminates packaging materials such as gaylords,

    pallets and stretch wrap.

    Disassembly stations

    Workbenches equipped with small hand tools were built

    so employees can themselves disassemble products that

    are only partially recyclable (such as 3-ring binders). A

    process book is attached to the station to explain what

    to do. Parts are put into sorting bins built into the workbench.

    Plastic pallets

    Ricoh Industrial de Mexico turns all plastic waste into plastic pallets.

    Green wasteGrass clippings from the gardens around the plant are used

    to provide nutrients for the same gardens.

    Sea Garden

    A display room was created at the Santa Ana facility to provide

    structured on-site training showing the step by-step process for

    achieving zero waste to landll. This central display room is open

    for all employees and visitors.

    Ideas for Excellence

    This award program encourages employees to submit creative

    and innovative improvement ideas to reduce, reuse, recycle,

    refuse or return waste. Seventy-six percent of all ideas submitted

    in the rst half of scal year 2001 were implemented.

    Sorting Makes Cents logo

    The Ofce Machine Group developed a slogan (Sorting Makes

    Cents) and logo to promote zero waste to landll.

    Zero Hero

    A zero waste to landll mascot called Zero Hero was created

    to build employee awareness for the project.

    0

    1000

    2000

    3000

    4000

    5000

    6000

    7000

    8000

    9000

    1998 1999 2000 2001

    Waste(tons)

    Land Disposal Recycle

    LANDDISPOSAL RECYCLE TOTAL

    RESOURCERECOVERYRATE

    1998 6017 1910 7927 24%

    1999 3833 3117 6950 45%

    2000 1665 4605 6270 73%

    2001 0 6420 6420 100%

    FISCALYEAR

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    Skylights have been installed at

    the 17482 Pullman site (Irvine)

    and Santa Ana facilities.

    Energy efcient light xtures have

    been installed in all California facilities.

    The Georgia plant improved the

    efciency of the HVAC system in

    the molding department byoptimizing

    the use of air conditioning and space

    heaters. This resulted in an 85 percent

    reduction in the operating hours of

    the space heaters, while maintaining

    product quality and a comfortable

    work environment for the employees.

    A team of employees in California used

    problem-solving techniques to identify

    wasted electricity and improve the

    dry toner production process to save

    electricity. The cost of electricity

    increased dramatically due to the

    electricity crisis in 2001. The average

    electric bill at the toner plant in Santa

    Ana increased128 percent per month.

    The target was to reduce electricity use

    in that building by 10 percent. Through

    a variety of countermeasures that were

    implemented, the team reduced electricity

    use by 18 percent.

    The automated electrical energy monitoring

    system Teletrolwas installed at the Tustinfacilities and the 2320 Redhill facility (Santa Ana).

    Metering devices were installed on key electrical

    equipment throughout the facilities. Data from

    each piece of equipment can be retrieved at 15

    minute or greater intervals and graphed to monitor

    usage and trends. This system is connected to Ricoh

    Electronics, Inc.s computer network and can be

    programmed and expanded as necessary.

    REDUCINGENERGY

    Throughout the company, variousenergy reduction activities have

    taken place, including:

    REIsEnergy Usage Trend

    REIsWater Usage Trend

    REI Electricity Usage

    10,000

    20,000

    30,000

    40,000

    50,000

    60,000

    70,000

    80,000

    1998 1999 2000 2001

    Fiscal Year

    MWh

    74,085

    65,343 63,719

    51,124

    REI Natural Gas Usage

    20

    40

    60

    80

    100

    120

    140

    160

    1998 1999 2000 2001

    Fiscal Year

    MMCF

    151

    138

    122114

    Water Usage (Metric Tons)

    50,000

    100,000

    150,000

    200,000

    250,000

    1998 1999 2000 2001

    216,779

    191,030

    160,423

    195,033

    8

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    By reusing and recycling parts during manufacturingprocesses we reduce the amount of waste. Two areas

    where we have achieved signicant progress are:RICOH

    9

    RECYCLINGOPERATIONS

    TONERCARTRIDGERECYCLINGOur toner cartridge collection and recycling program

    is an important part of our overall resource conservation

    efforts, which aim to prevent any of our products from

    ending up in landlls. We encourage users to return their

    used toner cartridges for recycling. We have simplied the

    process by including pre-paid shipping labels and instruction

    sheets in each box for free shipment by major carriers.

    The cartridges are completely disassembled, reusing parts

    that meet new-part standards. The remaining parts are

    recycled into new materials. The small amount of product

    that cannot be used for recycling is used as fuel and converted

    into energy.

    COPIERREMANUFACTURINGRicoh Electronics, Inc. has remanufactured over 2,000 copier

    systems since remanufacturing was begun at Ricoh Electronics,

    Inc. in 1996. Over 95 percent of the disassembled parts are

    recycled and used again during re-assembly. Cover parts arecleaned with high-pressure water, which is 100 percent recycled.

    Empty document feeder boxes from copier production are given

    to remanufacturing for slight modication and reuse saving $30

    per box.

    REIsCartridge Recycle History

    Recycled Cartridges

    50,000

    100,000

    150,000

    200,000

    250,000300,000

    1998 1999 2000 2001

    Fiscal Year

    #ofCartridges

    98,023

    145,805

    190,773

    258,736

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    MADISON ELEMENTARY

    SCHOOL BEAUTIFICATION

    March, 2001 Santa Ana, California

    INNER-COASTAL CLEANUP DAYS SantaAna, California September, 2001Orange, California September, 2002

    WORKINGWITHOURCOMMUNITIES

    10

    GWINNETT CHILDRENS

    SHELTERBEAUTIFICATION March, 2001 Lawrenceville, Georgia

    YELLOWRIVERCLEANUP October, 2001 Stone Mountain, Georgia

    Ricohs H.O.P. E.Team (HelpingOthers and ProtectingOurEnvironment) was formed in2001 to coordinate employee

    volunteer projects aligned withthe companys environmentalactivities. Employees from allparts of the company serve on the

    team. The team has coordinatedthe following projects alignedwith zero waste to landll.

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    ADOPT-A-ROAD September 2002Lawrenceville, Georgia

    THEBESTTHING

    ISNOTWHATWE

    PLANTEDINTHE

    GROUNDTODAY,

    BUTWHATWE

    PLANTEDINTHE

    CHILDRENSMINDS.

    Ranulfo GomezPlant Manager, RicohIndustrial de Mexico

    RICOH

    11

    ZERO WASTETO LANDFILL SEMINAR

    April, 2002 Santa Ana, California

    Ricoh Electronics, Inc., in cooperation

    with The Regional Environmental Business

    Resource Assistance Center (REBRAC),

    hosted a seminar to share information

    with participants about the steps Ricoh

    Electronics, Inc. took to become a

    zero waste to landll facility. Over 20

    representatives from area businesses,

    cities and government agencies attended

    including our local Congresswoman and amember of the California Integrated

    Waste Management Board.

    OTHERCOMMUNITY-BASED ACTIVITIES

    NEVADODE TOLUCATREE PLANTINGS July, 2001 and August, 2002Toluca Valley, Mexico

    Senator David Roberti (left), then member

    of the California Integrated Waste Management

    Board, is welcomed to Ricoh electronics, Inc.

    by Yoshihiro Nomura, Executive Vice President,

    Group Manager, Reprographic Supply Group.

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    Our commitment to theenvironment has garnered

    various awards including:CENTENNIAL HERITAGE MUSEUM ENVIRONMENTAL AWARD

    in recognition of achieving zero waste to landll.

    WASTE REDUCTION AWARDS PROGRAM (WRAP)

    for protecting the

    environment by

    using innovative,

    cost-effective and

    creative methods

    of reducing waste.

    ORANGE COUNTYCOASTKEEPER

    for zero waste to landll activities

    2000 BUSINESSOFTHE YEAR

    presented by Gwinnett Clean

    and Beautiful in Georgia for

    zero waste to landll activities.

    RICOH COMPANY, LTD. HARVEST AWARD 2001

    presented to the Reprographic Supply Group/

    Thermal Media Group in recognition of using

    zero waste to landll to increase business

    efciency and harvest greater prosperity.

    2002 CITATION AWARDFOREXCELLENCE

    IN CORPORATE COMMUNITY SERVICE

    presented by the National Points of

    Light Foundation in recognition of

    projects coordinated by the H.O.P.E.

    Team and the companys overall

    commitment to volunteerism.

    2002 CERTIFICATEOF SPECIAL

    CONGRESSIONAL RECOGNITION

    for waste reduction activities.

    12

    GAININGRECOGNITION

    WASTETO LANDFILL

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    RICOH

    13

    U.S. EnvironmentalProtection AgencyNational EnvironmentalPerformance TrackProgram. Performance

    Track is a voluntarypartnership programthat recognizes andencourages topenvironmentalperformers, publicand private entitiesthat voluntarily go

    beyond compliancewith environmental

    regulations andcommit tocontinuous

    environmentalimprovement.

    OTHERRECOGNITION

    THESEGROUPSHAVEBEEN

    ACCEPTEDINTOTHEPROGRAM:

    Reprographic Supply Group: February, 2002

    Thermal Media Group: February, 2002

    Ofce Machine Group: August, 2002

    Georgia plant: August, 2002

    Housam El Jurdi receives National Environmental

    Performance Track Award from Christine Todd

    Whitman of the US Environmental Protection Agency.

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    Finding contamination andtaking steps to remediate

    the environment is criticalto our mission.

    2300 REDHILL AVE.

    SANTAANA

    In June 1986, Ricoh Electronics, Inc. identied

    leaks in underground piping from the Isopar

    underground storage tanks. The piping was

    replaced and a geological consulting company

    was hired to investigate the extent of the

    contamination. In July 1988, a groundwater

    treatment system was constructed to treat

    contaminated water pumped out of four

    recovery wells. The recovery system was

    operated until September 1998, when the

    tanks were removed from the ground and the

    contaminated soil was removed and hauled to

    a treatment facility. During the tank removal,

    contaminated groundwater was pumped from

    the excavation and transported to a treatment

    facility. Ricoh Electronics, Inc. is presently

    working with the Regional Water Quality

    Control Board to determine how we can

    evaluate the soil under the building to see if

    the contamination migrated under the building.

    17482 PULLMAN ST.

    IRVINE

    In October 1996, Ricoh Electronics, Inc.

    determined that the soil and groundwater under

    the East end of the building was contaminated

    with perchloroethylene. This material was used inour photocopier drum manufacturing operations

    between 1978 and 1994, but we were not able to

    determine exactly how the material entered the soil.

    During 1996, we drilled numerous wells to identify the

    extent of the contamination. In April and May 1998, we

    excavated the contaminated soil from under the building.

    In April 2000, we installed a recovery well and treatment

    system to remove and treat contaminated groundwater.

    14

    REMEDIATING ENVIRONMENTALCONTAMINATION

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    RICOH

    15

    Using materials and parts that have minimalenvironmental impact requires the support

    of our suppliers. It is our goal to support allof our key suppliers to have an approvedEnvironmental Management System in placeby March 2003.Green partners voluntarily address the environmental impacts of their business activities

    and work with Ricoh Electronics, Inc. to achieve environmental goals. Certied suppliers

    have ISO 14001 certication or equivalent EMS or have registered support of Ricoh

    Electronics, Inc.s Green Procurement Program guidelines. We will assist all green

    partners with this program through training and materials, seminars and consulting.

    Ricoh Electronics, Inc. introduced the Green Procurement Program to major

    key suppliers or green partners in California on August 29, 2002. The seminar

    introduced key suppliers to Green Procurement and environmental policies,

    the planning requirements, the implementation process, and maintenance and

    improvement of the program.

    WORKINGWITHOURSUPPLIERS

    RICOH CONCEPTOF GREEN PARTNERSHIP

    Materials

    Parts

    Equipment /

    Material

    Supplies

    GREEN

    PROCUREMENTGREEN

    SALES

    INPUTSUPPORT

    Parts and raw

    material

    manufacturers

    Government and

    general consumers

    Development of Env.

    technologies

    Product assessment

    Design, Manufacturing and Sales

    RicohRecyclable design

    Energy conservation design

    Control of chemical substances

    GREEN PROCUREMENT ACTIVITIES

    Key ActivitiesRecycling / Re-manufacturing of products

    Recycling of partsRecycling of materials

    GREEN PURCHASE NETWORK

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    RICOHELECTRONICS, INC.

    Printed waterless on recycled paper.

    CALIFORNIA

    One Ricoh Square

    1100 Valencia Ave.

    Tustin, CA 92780-6428

    (714) 566-2500

    GEORGIA

    1125 Hurricane Shoals Road

    Lawrenceville, GA 30043-4827

    (770) 338-7200

    MEXICO

    Santiago Graff No. 103

    Parque Industrial Exportec 1

    Toluca, C.P. 50200 Mexico

    52 (722) 273-0199

    www.rei.ricoh.com/environment.htm

    For more information about Ricohs

    environmental activities, please visit:

    www.ricoh-usa.com/about/envir/ and

    www.ricoh.co.jp/ecology/e-/index/html

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    ENVIRONME

    NTALPROMOTION

    OFFICE

    RICOH

    ELECTRONICS,INC.

    1100VALENCIAAVE.

    TUSTIN,CA

    92780

    PLACE

    STAMP

    HERE

    RICOH ELECTRONICS, INC.2002

    ENVIRONMENTAL REPORTREADERSATISFACTION SURVEY

    WED LIKE YOURFEEDBACK

    Although we have made our best effort to

    summarize our environmental management

    activities, we know there are still many points

    that can be further improved. We would like

    to incorporate your feedback into future reports.

    We appreciate your time to ll out this survey

    and return it to the Environmental PromotionOfce at the address on the other side.